No Service Tax Can Be Levied On Rental Agreements In Name Of Individual Partners For Jointly Owned Property: CESTAT

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) ruled that no service tax is applicable on rental agreements in the name of individual partners for jointly owned property. The case involved a dispute over the applicability of service tax on rental income from a property jointly owned by partners. The tribunal held that since the rental agreements were in the names of individual partners, the income could not be subjected to service tax. This decision clarifies the tax treatment of rental income from jointly owned properties and reinforces the principle that service tax cannot be levied on individual partners’ rental income.